Coffee tumbled on improved weather in Brazil

Source: Dukascopy Bank SA

Rural commodities extended previous losses on Tuesday as favorable weather in Brazil and India is expected to increase crops. At the same time, drought in the US and Russia limited the downswing of the farm commodities.

Wheat declined despite strengthening demand from major importers amid lower crops in the US and Russia.

Corn slumped on speculation that recent rally may erode demand for the commodity. However, a decline in China's harvest this year limited the downswing.

Sugar slid as more favorable weather conditions in Brazil and India, the world's top producers, removed supply risk premium of the sweetener.

Coffee approached six-week low on signs that harvesting in Brazil gathered pace amid dry and warm weather.

 

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